Investors are beginning to be careful with the current uncertain market situation by being prepared to face the risk-off sentiment that can have a significant impact.
This was fueled by concerns over heightened geopolitical tensions following reports that Ukraine had attacked Russia on Tuesday.
Warming up the atmosphere even more when Ukraine uses ATACMS missiles supplied by the United States (US) and the previous Joe Biden administration has allowed Ukraine to use them.
The market is now expecting a response from Russia with a possible counter-attack launched in the near future.
The US dollar currency showed initial strengthening in the European session yesterday, but again moved gloomy in the New York session.
Analysts expect a potential strengthening of the US dollar again if the development of the war heats up and creates anxiety in the market.
The price chart of the EUR/USD currency pair still shows a horizontal movement, not yet out of the zone between the range of 1.06000 to 1.05000.
Trading that started around 1.06000 in the Asian session yesterday showed a decline in the European session, but failed to touch the support at 1.05000.
The price bounced back and is back near 1.06000 as a resistance level that continues to be tested until the trading continues into the Asian session this morning (Wednesday).
If the price increase continues above the 1.06000 level, it is possible that the price could go up to around 1.07000.
A continuation of the bullish pattern will push higher to the target of 1.08000.
However, if the US dollar starts showing strengthening following the market's risky sentiments, the price can plunge again with the initial focus being to test the 1.05000 support.
A lower drop breaking through the support will record the price's latest low with the target moving to the next focus around 1.04000.
